December 16th, 2018

Aphria names special committee to investigate allegations by short-sellers


By The Canadian Press on December 6, 2018.

The Aphria Medical Cannabis logo is shown in this undated handout image. Aphria is a Health Canada Licensed Producer of medical cannabis products. THE CANADIAN PRESS/HO-Aphria *MANDATORY CREDIT*

LEAMINGTON, Ont. – Marijuana producer Aphria Inc. says its board of directors has appointed a special committee of independent directors to review the company’s acquisition of LATAM Holdings Inc., which has been criticized by short-sellers.

The company says it remains confident in the deal, but in the face of what it called “inaccurate and misleading accusations” by the short-sellers it is undertaking the comprehensive review.

Quintessential Capital Management and Hindenburg Research have alleged that the cannabis grower’s acquisition of assets in Colombia, Argentina and Jamaica totalling $280 million from Scythian Biosciences were “largely worthless.”

The special committee includes John Herhalt, Shlomo Bibas and Tom Looney.

Herhalt, who is the lead independent director and the head of the audit committee, will lead the special committee.

Shares in the company, which plunged in the wake of the allegations, were up about 32 per cent or $1.63 at $6.63 in trading on the Toronto Stock Exchange today.

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